Jaguar Mining increased second-quarter gold production by 19 per cent year on year to 13,057 ounces, with the Turmalina mine in Brazil completing its first full quarter of operations since its March restart. The TSX-listed producer also strengthened its financial position during the period. Cash rose to US$74.8 million, compared with US$72.1 million at the end of March and US$48.3 million a year earlier. The company benefited from an average quarterly gold price of US$4,506 per ounce, which provided support while Turmalina continued its restart and Pilar processed lower-grade material.
Turmalina returns to full-quarter production
Turmalina produced 3,994 ounces, accounting for 31 per cent of Jaguar’s quarterly output. The operation processed 50,190 tonnes at an average head grade of 2.94 grams per tonne, with recovery reaching 84 per cent. Most of the mill feed came from the B and C orebodies. Material from Faina represented 10 per cent of feed and achieved metallurgical performance above expectations.
The restart re-established Turmalina as a second operating source following the 2024 failure of the Satinoco dry-stacked tailings facility, which disrupted the MTL complex. Jaguar continued to make payments related to compensation and remediation during the quarter. The return of mining activity at Turmalina therefore did not eliminate the company’s continuing legal, environmental and financial exposure associated with the Satinoco failure.
Pilar production falls as head grade declines
At Pilar, quarterly gold production fell to 9,063 ounces, compared with 10,731 ounces in the same period a year earlier. Although throughput increased, the average head grade declined from 4.04 grams per tonne to 3.30 grams per tonne. The change reflected a greater proportion of development ore and fewer higher-grade stoping tonnes. Gold recovery remained at 89 per cent.
The company is using underground development and drilling to address mine sequencing and access to additional production areas. Jaguar completed 1,955 metres of underground development across Pilar and Turmalina during the quarter and drilled 11,203 metres.
Development work supports second-half production
The development programme is intended to open additional mining faces and improve production sequencing during the second half of the year. Jaguar’s full-year production guidance remains 50,000–60,000 ounces, leaving the company dependent on continued operational progress at both mines to reach the stated range. The higher gold price also strengthened the company’s ability to absorb the costs associated with Turmalina’s restart and the lower grades being processed at Pilar. Cash increased by more than US$26 million from a year earlier, reaching US$74.8 million at the end of June.
